HomeHR glossaryWage Drift
Wage Drift

Wage drift refers to the phenomenon where an employee's actual earnings exceed the initially agreed-upon or contractually determined wage or salary. This typically occurs when employees receive additional compensation through overtime, bonuses, or other variable pay components beyond their base pay.

An employee who was hired at a fixed annual salary of $50,000 but earns $55,000 in a year due to overtime and performance bonuses is experiencing wage drift.

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